Senators Urge Investigation of Physician-Owned Entities

Five senators recently asked HHS' Office of Inspector General to investigate physician-owned distributorships to determine whether they violate anti-kickback statutes or federal fraud and abuse laws. Distributorships market and distribute medical devices to hospitals in exchange for a commission on the sale. According to a Senate Finance Committee report compiled by Sen. Orrin Hatch's (R-Utah) office, physician-owned distributorships create "financial incentives for physician investors to use those devices that give them the greatest financial return."

• "Senators Request Probe of Surgeons" (Carreyrou, Wall Street Journal, 6/9).